3:47: Ballmer: We need to see innovation in OS, our partners hardware and our own hardware.

...

If you want to have a knock down gorgeous enterprise experience show someone one of our 82-inch tablets. They'll want to buy some Windows tablets and phones to match it.

3:50: Can you comment on the applications group? (Office, Bing, etc.)

Qi Lu: If you look at our strategy, Microsoft wants to deliver for customers. Mission for Bing to help people complete tasks. People do search to complete a task. Office is used to get stuff done. Skype connects people all collaborating. Focus use assets to deliver high value scenarios, to allow users to accomplish goals of things they value the most.

Ballmer: We believe in machine learning. Make machine learning a strong service to support developers.

Satya Nadella: Our strategy with cloud ... all first party applications, build cloud infrastructure in support of our first party apps. This battle tests our infrastructure. Our server products getting better because of that. Machine learning is something we learned in Bing, something we're productizing in Azure. You will see elsewhere.

3:54: Growing level of red tape, and in-fighting, to what extent a part of you thinking in this reorg? Does this direct control to Steve?

Ballmer: We spent hundreds of hours developing notion of devices and services. What do we need to execute well? What is it in our business dev? How do we add depth. How do we execute on it? Qi Lu likes to say we're like a football team, with each person helping the team, unlike say baseball which is one on one.

Company this size doesn't run in one person's brain. Whole company involved in the whole company's strategy.

3:57: Last question. Do senior managers have P&L responsibility? What are incentives?

Ballmer: Level of accountability rises when we all have to look at integrated profitability.

If you subdivide think into too fine a parts, then you don't think of R&D as a company asset. You think of it as your thing.